Keeping pace with connectivity demands

Currently capable of serving 25% of UK commercial premises, ITS’ next target is to reach 40% coverage in the coming years. Here, CEO Daren Baythorpe shares how the company will match network expansion with strong connection rates to deliver return on investment.

ITS focuses on business-dense areas with demand for full fibre services. Its model centres on providing B2B connectivity and commercial and technical innovation to serve all aspects of the business community. This is delivered through a network of local resellers, national providers, public sector partnerships, or via carriers and the data centre space.

“As we launch new networks, the next step is naturally to drive connections as demand continues to accelerate,"  said Baythorpe.

Baythorpe states that this demand for high bandwidth service is evident through its partners and is driven by the adoption of cloud-based applications and AI. “Our product portfolio is designed to support end-users on their digital journey,” he added. “We are already seeing a shift from demand for 1Gpbs connections to 10Gbps. The signs are already here that this is likely to increase to 100Gbps over the coming years.”

To drive connections, ITS has invested in its delivery capabilities over the last year to deliver volume connections whilst continuing the rollout of its XGS-PON network. “We have also invested to support our partners to educate end-users, and create opportunities through local marketing campaigns,” added Baythorpe.

This strategy has been underpinned by the investment ITS has attracted. In addition to the significant existing facility provided by Aviva Investors, the company secured £100m of debt financing from global investment firm Avenue Capital Group at the end of 2023.

“There is no doubt that investor scrutiny has been heightened given the challenges of the economic climate and factors that surround it,” said Baythorpe. “Securing the funding last year was a strong endorsement of both our business and our strategy, but also of our sustainable approach to growth, and ability to innovate and adapt to evolving market conditions.

“We have been able to demonstrate compelling returns on capital from our business model and business plan.”

Customer experience has also emerged as a top priority for ITS, as a differentiator in a noisy, competitive marketplace. “As a high-growth business, the challenge is to scale customer support at the same pace,” said Baythorpe.

To address this, the company has invested heavily in the ‘back office’ systems that underpin its differentiated services, giving it the technical tools to both streamline processes and provide accurate information to its teams, suppliers, partners, and their customers. “It is about being responsive, reliable, and consistent,” added Baythorpe.

The company has also broadened its offer beyond business FTTP and Leased Lines to encompass wider full fibre infrastructure markets for connectivity such as data centres, 5G, and AI. Baythorpe said: “Dark Fibre in the access layer is critical to enable these technologies, and with a footprint available across the UK, we are well positioned to support these types of projects.”

To fulfil its promise of innovating in the space, ITS is working as part of a consortium on an Open RAN 5G ‘proof of concept’ funded by the Department of Science Innovation and Technology (DSIT).

Known as The Liverpool City Region HDD (High Demand Density), as a consortium partner ITS will deliver the infrastructure that will enable innovative 5G solutions to be provided at demanding high density and volume locations such as football stadiums.

ITS' public sector offering includes 22 contracts including CCS’s NS3. The company has also delivered projects in collaboration with strategic partners. Over the past eighteen months, ITS has completed two infrastructure projects through joint ventures with local authorities in the Royal Borough of Greenwich and the Liverpool City Region.

This level of innovation is symbiotic with sectoral transformation as the full fibre market continues to evolve at a significant rate. Baythorpe sees this as beneficial for UK businesses but points to the need for regulation amidst change. He stated. “With Ofcom’s Telecom Access Review 2026 consultation now underway, it’s vital that its outcomes create the conditions for continued investment, a predictable environment to operate, and a fair playing field for all. We will be working with our peers within the Independent Networks Cooperative Association (INCA) to make sure we can achieve this.”